Mortgages

Mortgages are another common type of consumer loan. A good number of folks in the U.S. were able to purchase their house with the aid of a mortgage. This is a closed-end credit because the money borrowed can only be used to fund the buying of a house.  After the loan has been approved, you are required to make installment payments to offset the balance. If you default your payment, the lender has the right to seek a possession order from the court. When this is granted, they can take possession of your house.